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LequteMan
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Dr Ngozi Okonjo Iweala, Minister of Finance, said Federal Government would continue with the proposed 65 dollars oil benchmark for the 2015 budget in spite of volatility in the global oil price.
Okonjo-Iweala disclosed this at the public presentation of the 2015 budget on Wednesday in Abuja.
``We have put the following benchmarks which are operated in the 2015 budget; oil production remains at 2.27 million barrel per day, as I said, benchmark oil price at 65 dollars per barrel.
``We are using an exchange rate of N165 to the dollar and we are projecting a fiscal deficit N755 billion or 0.79 per cent of Gross Domestic product (GDP).
According to her, GDP growth is projected at 5.5 per cent as also projected by the National Bureau of Statistics.
This, she said, was one percentage point lower than what had projected with the earlier 78 dollars oil benchmark.
The minister noted that the 65-dollar oil benchmark represented a 13-dollar per barrel drop from what was originally proposed before the drop in oil price.
She added that government had decided to take short to long term measures to tackle the basic challenges in the economy.
She said that most of the measures would kick in towards the second quarters of 2015, adding that it would help to boost the non oil revenue in the country.
She said that for the 2015 budget, IGR had been projected at about 450 billion up from 328 billion as at October.
She said that in the short term, the tax revenue would be increased but added that it would not be by increasing the tax rate but by strengthening tax administration.
On other ways to generate revenue, she said the Federal Inland Revenue services would be improved to bring in N160 billion in 2015 and over the three years period, an additional N460 billion.
Okonjo Iweala said that a sole charge was also proposed on business and first class flight tickets and none on the economy tickets, adding that Champagnes, wines and spirits would also be charged.
This, she said, would generate N2.3 billion, adding that a mansion tax had also been proposed to be collected in the FCT.
She said that residential properties with values above 300 million would pay tax and projected to yield about 350 million for the FCT and would help to enhance the revenue.
``In total, all the sole charges on the luxury items are expected to yield about 10.5 billion in 2015 ,’’ she said.
#Nigeria
Okonjo-Iweala disclosed this at the public presentation of the 2015 budget on Wednesday in Abuja.
``We have put the following benchmarks which are operated in the 2015 budget; oil production remains at 2.27 million barrel per day, as I said, benchmark oil price at 65 dollars per barrel.
``We are using an exchange rate of N165 to the dollar and we are projecting a fiscal deficit N755 billion or 0.79 per cent of Gross Domestic product (GDP).
According to her, GDP growth is projected at 5.5 per cent as also projected by the National Bureau of Statistics.
This, she said, was one percentage point lower than what had projected with the earlier 78 dollars oil benchmark.
The minister noted that the 65-dollar oil benchmark represented a 13-dollar per barrel drop from what was originally proposed before the drop in oil price.
She added that government had decided to take short to long term measures to tackle the basic challenges in the economy.
She said that most of the measures would kick in towards the second quarters of 2015, adding that it would help to boost the non oil revenue in the country.
She said that for the 2015 budget, IGR had been projected at about 450 billion up from 328 billion as at October.
She said that in the short term, the tax revenue would be increased but added that it would not be by increasing the tax rate but by strengthening tax administration.
On other ways to generate revenue, she said the Federal Inland Revenue services would be improved to bring in N160 billion in 2015 and over the three years period, an additional N460 billion.
Okonjo Iweala said that a sole charge was also proposed on business and first class flight tickets and none on the economy tickets, adding that Champagnes, wines and spirits would also be charged.
This, she said, would generate N2.3 billion, adding that a mansion tax had also been proposed to be collected in the FCT.
She said that residential properties with values above 300 million would pay tax and projected to yield about 350 million for the FCT and would help to enhance the revenue.
``In total, all the sole charges on the luxury items are expected to yield about 10.5 billion in 2015 ,’’ she said.
#Nigeria
